According to data from Trulia the real estate market in Phoenix favors buying as opposed to renting.
Both Phoenix, Az and Mesa, AZ are quoted in the study as having a Price:Rent Ratio of 8.
Results being interpreted as follow:
- Price-to-Rent Ratio of 1-15: Owning a home is much less expensive than renting in this city.
- Price-to-Rent Ratio of 16-20: The total costs of homeownership in this city are greater than the costs of renting, but it might still make financial sense to buy depending on the situation.
- Price-to-Rent Ratio of 21+: Renting in this city is much less expensive than owning a home.
The full methodology is here.
The only area of Phoenix I tend to find myself working in is the lovely Biltmore. Where there are some great luxury condominium developments . My main specialities of Paradise Valley and Scottsdale are not covered in the study but I feel the trend is the same, these are areas where buying is more cost effective than renting at this time.
My old home town New York City tops the lists of places where renting makes more sense with a Price:Rent Ratio of 31! So I guess I won’t be buying that place in the West Village just yet.